Overview of Evercore ISI's Rating#
Evercore ISI has reiterated an Outperform rating for Apple Inc. (NASDAQ:AAPL) and set a price target of $330 ahead of the company's earnings report scheduled for April 30. This target falls within a broader analyst range of $215 to $350. However, some data suggests that the stock may currently be overvalued, with a price-to-earnings (P/E) ratio of 34.28, indicating how much investors are willing to pay for each dollar of earnings.
Expectations for Earnings#
The firm anticipates that Apple will report results that meet or slightly exceed consensus estimates of $109.2 billion in revenue and $1.94 in earnings per share for the March quarter. Evercore ISI projects a 20% year-over-year growth in iPhone revenue, surpassing the general market estimate of 18.7%. This growth is attributed to the ongoing success of the iPhone 17 and strong demand in China.
Services Segment Growth#
Apple's Services segment is expected to maintain mid-teens growth, supported by strong performance in Apple Pay, iCloud, Licensing, and AppleCare, despite some weaker trends in the App Store. Evercore ISI believes this segment will continue to show double-digit growth, bolstered by solid hardware sales.
Future Prospects and Leadership Changes#
The firm notes that consensus estimates predict gross margins of 48.3% for the March quarter, which aligns with Apple's guidance range of 48% to 49%. They expect a slight decline to 47.7% in the June quarter. Apple is also viewed as a top pick for 2026, with strong fundamentals and potential new AI offerings that could enhance revenue.
In recent news, Apple announced a leadership transition, with Tim Cook set to become Executive Chairman in September 2026, while John Ternus will take over as CEO. Following this announcement, various firms have maintained their ratings on Apple, reflecting Cook's significant contributions to the company.